Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask International Economics Expert

You are required to study the following article extracts and answer the problems given below:

Excerpt 1: The role of FDI in  the development of Singapore

Gary Dean, April 2000

Reference: http://okusi.net/garydeanlworks/fdising.html

Along with the other NIEs, Singapore shared certain factors that tended to increase its international competitiveness, among them stable macroeconomic policies, sound financial systems and good infrastructure, an educated workforce, a work ethos, and policies which encouraged entrepreneurial activity. However, in the area of foreign investment Singapore took quite another path compared to South Korea and Taiwan. In fact; the Singapore government's treatment of foreign investors -- at least in the early years of development -- was almost preferential when compared to indigenous capital. Through infrastructural subsidies and tax incentives to foreign exports, the local Singaporean business class was to an extent marginalized·

By way of contrast, South Korea's foreign investment code was one of the world's most restrictive. Unlike Singapore, South Korea had a large population and a relatively large domestic economy. South Korea's subsidised conglomerates used their highly-protected domestic markets as a base to produce the economies of scale required to launch themselves aggressively into foreign markets in the late 1960's and 1970's.

In effect, the Singaporean government's policies hoped to attract TNCs to establish manufacturing facilities in Singapore to not only provide employment, but also with the hope that sophisticated foreign technology would 'trickle down' to local companies effecting technology transfer. Government policy-makers tended to believe that TNCs were better vehicles for the acquisition of high technology.IQ] However, to what extent this trickle-down effect actually happened is debatable. It is suggested that TNCs are generally reluctant to use local contractors, which is where transmission of techniques and practices would be expected to take place, and that the technology actually used in locations such as Singapore is not cutting edge, but rather at the end of its product life-cyc1e.

Excerpt from: Foreign Direct Investment

(Source: UNCTAD)

Global foreign direct investment (FDI) inflows grew in 2007 to an estimated US$1.5 trillion, surpassing the previous record set in the year 2000. FDI flows to developed countries in 2007 grew for the fourth consecutive year, reaching US$l trillion. Flows were particularly buoyant in the United Kingdom, France, and the Netherlands. The United States maintained its position as the largest single FDI recipient. The European Union (EU) as a whole continued to be the largest host region, attracting almost 40% of total FDI inflows in 2007. However, several risks to the world economy -- most of them not new -- may have implications for FDI flows to and from developed countries in 2008.

• In Africa, FDI inflows in 2007 remained relatively strong. The unprecedented level of inflows (US$36 billion) was supported by a continuing boom in global commodity markets.

• FDI inflows to Latin America and the Caribbean, meanwhile, rose by 50% to a record level ofUS$126 billion. Significant increases were recorded in the region's major economies, especially Brazil, Chile and Mexico, where inflows doubled.

• FDI inflows to South, East and South-East Asia, and Oceania maintained their upward trend in 2007, reaching a new high ofUS$224 billion, an increase of 12% over 2006. More than half  of all FDI to developing countries went to these economies. At the subregional level, there was a further shift towards South and South-East Asia, although China and Hong Kong (China) remained the two largest recipients in the region.

• In West Asia, overall FDI inflows declined by 12%. Turkey and oil-rich Gulf States centinued to attract the most, but geopolitical uncertainty in parts of the region affected FDI overall.

• FDI to South-East Europe and the CIS, or transition economies, expanded significantly, by 41 %, to a new record of US$98 billion. This was the seventh year of uninterrupted growth ofFDI in the region. Inflows almost doubled to the region's largest recipient, the Russian Federation.

problems:

Q1) What are the determinants of foreign direct investments in developing countries?

Q2) Examine the type of incentives that developing countries governments may implement to attract foreign direct investments.

Q3) What are the FDI trends in Singapore in the last decade? Discuss any changes in the government's strategy towards FDI

International Economics, Economics

  • Category:- International Economics
  • Reference No.:- M91953

Have any Question? 


Related Questions in International Economics

International economics 7 calculation questionsplease show

International Economics, 7 Calculation Questions Please show the full calculation. Type or pictures of your handwriting are fine! 1. Consider the following data on August 1, 2016 (annual) interest rates US: 0.3% Brazil: ...

Economics assignmentpart i1 assume the united nations

Economics Assignment PART I 1. Assume the United Nations Educational, Scientific, and Cultural Organization (UNESCO) hired you as an economic development expert. Your mission is to travel to several developing countries ...

Assignmentanalyze measures of economic growth and

Assignment Analyze measures of economic growth, and comparative and absolute advantage in international trade for the following countries: o USA o China o Saudi Arabia o Democratic Republic of Congo NEED 300 WORDS APA FO ...

Essay should be based on one of the problems mentioned into

Essay should be based on one of the problems mentioned into Haberler (1950) with references to the main assumptions of the general equilibrium analysis

Economics problem seta suppose the united states can

Economics Problem Set A) Suppose the United States can produce 20 tons of FOOD or 8 TRACTORS, and suppose Japan can produce 10 tons of FOOD or 3 TRACTORS. B) What is the opportunity cost of producing tractors in the Unit ...

Assignmentaccording to theorist karen horney these 10

Assignment According to theorist Karen Horney, these 10 neurotic needs can be classed into three broad categories: Category 1: Moving Towards People (Compliant)-Need for affection and approval-Need for a powerful partner ...

Can lesotho afford an independent monetary

Can Lesotho afford an independent monetary policy? Requirement: 2100 words, 1.5. Spacing, No plagiarism, apa style of referencing. Includes abstract page and conclusion page

1 discuss the key motives behind foreign direct investment

1) Discuss the key motives behind foreign direct investment. Compare (statistically) the FDI of US corporations with those of foreign multinationals in the US. Why do many emerging-market economies welcome FDI by US mult ...

Assignment global economy national economies and

Assignment: Global Economy, National Economies, and Competition In the first part of the twenty-first century a great recession struck most of the countries in the world. The next decade has been severally impacted with ...

Research paper for the us and south korea economylester

Research Paper for the US and South Korea Economy Lester Scholl's administrative assistant calls you on Monday afternoon to set up a conference call between you and the chairman tomorrow morning to discuss the board's re ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen